SYIEF - DSM-Firmenich: Not Seeing Much Benefit From The Merger Yet
2024-03-22 04:03:34 ET
Summary
- DSM-Firmenich reports underwhelming results in the challenging vitamin market and plans to separate Animal Nutrition & Health business in 2025.
- The company continues to invest heavily in R&D, with recent breakthroughs including the creation of a new flavor ingredient using AI.
- The balance sheet situation is clarified, with net debt at €2.2 billion and a reasonable gearing level. Proposed dividend of €2.50 per share.
- Valuation looks reasonable with a forward EV/EBITDA of roughly 15x, but the company has yet to show much progress on the promised merger synergies.
We are updating our coverage of DSM-Firmenich ( DSFIY )( DSMFF ) after the company delivered full-year 2023 financial results, and made some additional announcements like the planned separation of their Animal Nutrition & Health business. In our last article , we gave the company a "Neutral" rating given its strong competitive moat, balanced with shares being fully valued and challenges in the vitamin market....
DSM-Firmenich: Not Seeing Much Benefit From The Merger Yet